<PAGE>
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
(As last amended in Rel. No. 312905, eff. 4/26/93.)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 1995
Commission File Number: 1-12286
MID-ATLANTIC REALTY TRUST
(Exact name of registrant as specified in its charter)
MARYLAND 52-1832411
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1306 Concourse Drive, Suite 200, Linthicum 21090
(Address of principal executive offices) (Zip Code)
(410) 684-2000
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
YES X NO
6,118,211 Common Shares were outstanding as of September 30, 1995.
1
MID-ATLANTIC REALTY TRUST
AND SUBSIDIARIES
Part I. FINANCIAL INFORMATION
Item 1. CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF OPERATIONS
CONSOLIDATED STATEMENTS OF CASH FLOWS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Part II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Item 2. CHANGES IN SECURITIES
Item 3. DEFAULTS UPON SENIOR SECURITIES
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Item 5. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
2
Part I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
MID-ATLANTIC REALTY TRUST
Consolidated Balance Sheets
As of
September 30, 1995 December 31,
1994
(UNAUDITED)
ASSETS
Properties:
Operating properties................$ 141,331,574 140,062,761
Development operations ............. 11,885,326 6,354,947
Property held for development or sale 8,186,927 8,630,465
------------ ------------
161,403,827 155,048,173
Cash and cash equivalents ........... 912,446 344,522
Notes and accounts
receivable - tenants and other...... 1,851,730 1,688,194
Due from joint venture partners ...... 1,922,143 1,937,019
Prepaid expenses and deposits ....... 831,624 402,283
Deferred financing costs ............. 3,203,047 3,422,376
------------ ------------
$ 170,124,817 162,842,567
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable ......................$ 17,032,461 20,139,413
Accounts payable and accrued expenses 3,205,915 3,534,277
Construction loan payable .......... 5,140,996 -
Mortgages payable .................. 60,548,929 53,251,140
Convertible subordinated debentures. 59,980,000 60,000,000
Deferred income..................... 1,334,910 730,466
Minority interest in
consolidated joint ventures ...... 417,123 330,893
------------ ------------
147,660,334 137,986,189
Shareholders' Equity:
Preferred shares of beneficial interest,
$.01 par value, authorized 2,000,000 shares,
issued and outstanding, none ..... - -
Common shares of beneficial interest,
$.01 par value, authorized
100,000,000, issued
and outstanding, 6,118,211 and
6,291,407, respectively 61,182 62,914
Additional paid-in capital.......... 41,240,990 42,602,505
Distributions in excess of accumulated
earnings ........................... (18,837,689) (17,809,041)
------------ ------------
22,464,483 24,856,378
------------ ------------
$ 170,124,817 162,842,567
============ ============
See accompanying notes to consolidated financial statements.
<PAGE> 3
<PAGE>
MID-ATLANTIC REALTY TRUST
Consolidated Statements of Operations
(UNAUDITED)
Nine Months Ended September
30,
1995 1994
REVENUES:
Rentals ............................$ 17,483,891 16,119,996
(Loss) gain on sales of properties
held for sale, net ........... (25,020) 49,495
Other .............................. 858,587 699,463
------------ -----------
18,317,458 16,868,954
COSTS AND EXPENSES:
Interest .......................... 8,370,983 7,571,071
Depreciation and amortization
of property and improvements ..... 4,076,501 3,746,255
Operating ......................... 2,256,948 2,517,944
General and administrative ......... 1,246,285 1,165,534
------------ -----------
15,950,717 15,000,804
EARNINGS FROM OPERATIONS
BEFORE MINORITY INTEREST .......... 2,366,741 1,868,150
Minority interest expense ........... (537,049)
(435,213)
------------ ------------
EARNINGS FROM OPERATIONS ............ 1,829,692 1,432,937
Gain on life insurance proceeds ...... 1,001,787 -
(Loss) gain on sales of operating
properties ........................ (377,358) 335,363
------------ ------------
EARNINGS BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE....... 2,454,121 1,768,300
Cumulative effect of change in
accounting for percentage rents .. 612,383 -
------------ ------------
NET EARNINGS .........................$ 3,066,504 1,768,300
============ ============
PER SHARE DATA:
EARNINGS PER SHARE BEFORE CUMULATIVE
EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 0.39 0.28
Cumulative effect of change in
accounting principle ............. 0.10 -
------------ ------------
NET EARNINGS ......................... $0.49 0.28
============ ============
Three Months Ended September
30,
1995 1994
REVENUES:
Rentals ............................$ 5,797,240 5,145,478
(Loss) gain on sales of properties
held for sale, net ............. (29,579) 49,495
Other .............................. 276,874 249,693
----------- ------------
6,044,535 5,444,666
COSTS AND EXPENSES:
Interest .......................... 2,821,737 2,493,518
Depreciation and amortization
of property and improvements ..... 1,374,125 1,264,874
Operating ......................... 719,273 859,166
General and administrative ......... 416,276 383,582
------------ ------------
5,331,411 5,001,140
EARNINGS FROM OPERATIONS
BEFORE MINORITY INTEREST .......... 713,124 443,526
Minority interest expense ............ (181,488) (126,065)
------------ ------------
EARNINGS FROM OPERATIONS ............ 531,636 317,461
Gain on life insurance proceeds ...... - -
(Loss) gain on sales of operating
properties ........................ - -
------------ ------------
EARNINGS BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE 531,636 317,461
Cumulative effect of change in
accounting for percentage rents .. - -
------------ ------------
NET EARNINGS .........................$ 531,636 317,461
============ =============
PER SHARE DATA:
EARNINGS PER SHARE BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE 0.09 0.05
Cumulative effect of change in
accounting principle .............. - -
NET EARNINGS ....................... $0.09 0.05
============ ============
See accompanying notes to consolidated financial statements.
<PAGE> 4
<PAGE>
MID-ATLANTIC REALTY TRUST
Consolidated Statements of Cash Flows
(UNAUDITED)
Nine Months Ended September
30, 1995 1994
Cash flows from operating activities:
Net earnings .......................$ 3,066,504 1,768,300
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization .... 4,076,501 3,746,255
Loss (gain) on sales of operating
properties ..................... 377,358 (335,363)
Minority interest in earnings, net 537,049 435,213
Loss (gain) on sales of properties held for
sale, net ...................... 25,020 (49,495)
Changes in operating assets and liabilities:
(Increase) decrease in operating assets (592,877) 754,949
Increase (decrease) in operating
liabilities ................... 276,082 (1,452,136)
------------ ----------
Total adjustments ........... 4,699,133 3,099,423
------------ ----------
NET CASH PROVIDED BY OPERATING
ACTIVITIES ......................... 7,765,637 4,867,723
Cash flows from investing activities:
Additions to properties ............ (13,242,282) (15,681,491)
Proceeds from sales of properties... 2,835,225 1,471,602
Receipts from minority partners .... 206,500 110,500
Payments to minority partners ...... (642,443) (669,099)
------------ ------------
NET CASH USED IN INVESTING
ACTIVITIES ........................ (10,843,000) (14,768,488)
------------ ------------
Cash flows from financing activities:
Proceeds from notes payable ....... 39,400,000 19,056,366
Principle payments on notes payable (42,506,952) (5,514,635)
Proceeds from mortgages payable .... 7,700,000 -
Principal payments on mortgages payable (402,211) (324,547)
Proceeds from construction loan payable 5,140,996 -
Additions to deferred finance costs (209,005) (9,073)
Shares purchased ................... (1,382,389) -
Dividends paid .................... (4,095,152) (3,963,586)
------------ -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 3,645,287 9,244,525
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ............... 567,924 (656,240)
CASH AND CASH EQUIVALENTS,
beginning of period ................ 344,522 687,108
------------ ------------
CASH AND
CASH EQUIVALENTS, end of period ...$ 912,446 30,868
In April, 1995, $20,000 in convertible debentures were converted to 1,904
common shares of beneficial interest decreasing convertible subordinated
debentures by $20,000, decreasing deferred financing costs by $858 and
increasing shareholders equity by $19,412.
During the nine month period ended Sepember 30, 1995, $396,624 in interest
costs were capitalized as construction period interest in development
operations.
See accompanying notes to consolidated financial statements.
<PAGE> 5<PAGE>
MID-ATLANTIC REALTY TRUST
Notes To Consolidated Financial Statements
(UNAUDITED)
ORGANIZATION
Mid-Atlantic Realty Trust (the "Company", or "MART") was formed on June 29,
1993 and commenced operations effective with the completion of its initial
public share offering on September 11, 1993. The Company is the successor to
the operations of BTR Realty, Inc. (the predecessor to the company), (BTR),
and qualifies as a real estate investment trust (REIT) for Federal income tax
purposes.
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated balance sheet as of September 30, 1995 and the
consolidated statements of operations for the Company for the nine and three
month periods ended September 30, 1995 and September 30, 1994 and the
consolidated statements of cash flows for the periods ended September 30,
1995 and September 30, 1994, have been prepared by the Company without audit.
In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position and
the results of operations have been included. The results of operations for
the periods ended September 30, 1995 are not necessarily indicative of the
operating results for the full year.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been omitted. It is suggested that these consolidated
financial statements be read in conjunction with the consolidated financial
statements and notes thereto included in the Mid-Atlantic Realty Trust
December 31, 1994 Annual Report to Shareholders.
Certain amounts for 1994 have been reclassified to conform to 1995
presentation.
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
Effective January 1, 1995 the Company changed its accounting treatment for
percentage rent. Percentage rent revenues are based on store sales for
certain periods and are charged according to a percentage over a breakpoint
amount of sales for the period according to the lease agreement. During the
year ended December 31, 1994 and previously, percentage rent was recognized
as rental revenues in the period when the actual percentage rent was billed
and received. The new method recognizes percentage rent as rental revenues
in the period when the actual percentage rent is earned. The Company began
on January 1, 1995 estimating the percentage rent earned from major tenants
and recorded the amounts monthly as receivable. The cumulative effect of this
change on January 1, 1995 was $612,383. The Company believes that this
change is preferable since it provides better matching of revenues and
expenses.
GAIN ON LIFE INSURANCE PROCEEDS
In January, 1995, the Company received $1,002,000 in life insurance
proceeds as a result of the death of a former BTR general partner and
officer.
NET EARNINGS PER SHARE
Net earnings per share of common share and common share equivalents were
computed by dividing net earnings by the primary weighted average number of
common share and common share equivalents outstanding for each period. The
weighted average number of common shares and common share equivalents for the
nine month periods ended September 30, 1995 and September 30, 1994 was
6,212,973 and 6,291,407, respectively. The weighted average number of common
shares and common share equivalents for the three month periods ended
September 30, 1995 and September 30, 1994 was 6,136,179 and 6,291,407,
respectively.
The Company sold $60,000,000 in convertible subordinated debentures in
September, 1993. In April, 1995, $20,000 in debentures were converted to
1,904 common shares of beneficial interest and $8 (due to fractional shares).
The balance of the debentures, of $59,980,000, convertible at $10.50 per
share, if fully converted, would produce an additional 5,712,381 shares.
Pursuant to the 1993 Omnibus Share Plan ("Plan"), the Company authorized on
February 1, 1994 the availability of 300,000 shares for the Plan. Trustees,
officers and key employees of the Company, are eligible for the Plan. On
February 1, 1994, the executive compensation committee of the Board of
Trustees granted to trustees, officers and key employees 256,000 option
shares at an option price of $10.50 per share with 89,333 shares vesting on
February 1, 1994, 83,333 shares vesting on January 1, 1995 and the balance
vesting over the next year. The average market price of MART shares for the
three and nine month periods ended September 30, 1995 was $8.79 and $8.47 per
share, respectively, and the closing market price at September 30, 1995 was
$8.94 per share. No options were exercised during the period ended September
30, 1995 and based on the market value of MART shares, the options, if
converted, would be anti-dilutive.
On September 14, 1995, the Company authorized a new Stock Option Plan,
subject to the approval of shareholders, which grants a number of options to
purchase shares equal to 60% of the number under the current Plan, or
153,600. Options will vest in thirds, or 51,200 on September 30, 1995 and on
the first and second anniversary thereof. The exercise price of the options
will be determined as the market price on the close of business on the date
on each date of vesting. No options were exercised on September 30, 1995 and
based on the market value of MART shares, the options, if converted, would be
anti-dilutive.
ACQUISTION OF OUTSTANDING SHARES
On February 14, 1995, the MART Board of Trustees approved a stock
repurchase plan which authorizes the repurchase of up to approximately
310,000 shares. The Company purchased 175,100 shares in the nine month
period ended September 30, 1995 for $1,382,389, at an average cost of $7.89
per share. Subsequently, the Company purchased an additional 6,600 shares
thru October 23, 1995 for $56,604, at an average cost of $8.58 per share.
SHAREHOLDERS' EQUITY
During the nine months ended September 30, 1995, shareholders' equity
changed for the following items:
- Net earnings of $3,066,504.
- Dividend paid by MART of $4,095,152.
- Shares purchased by MART of $1,382,389.
- Common shares and Additional paid in capital
increased by $19,142 due to conversion of $20,000
in debentures.
<PAGE> 6
<PAGE>
Part I. FINANCIAL INFORMATION
Item 2.
MID-ATLANTIC REALTY TRUST
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion compares the operations for the nine and three
month periods ended September 30, 1995 with the operations for the nine and
three month periods ended September 30, 1994.
Comparison of nine months ended September 30, 1995 to nine months ended
September 30, 1994
Rental revenues increased by $1,364,000 or 8% to $17,484,000 for the nine
months ended September 30, 1995 from $16,120,000 for the nine months ended
September 30, 1994. Net increases in occupancy and rental rates contributed
to project rental increases of approximately $932,000. In addition, the
purchase of the Shoppes at Easton in September, 1994 contributed to increased
rental revenues of approximately $956,000. The increases were offset by a
$206,000 decrease in rental revenues attributable to the timing change in
accounting for percentage rents. The increases were also offset by a
$245,000 decrease in rental revenues attributable to the sale in February,
1995 of the Regal Row warehouse project and the sale in December, 1994 of the
Oakton Bowling center. In addition, $64,000 in net rental decreases were
primarily related to vacancies.
(Loss) gain on sales of properties held for sale decreased by 75,000,
which was due to a $29,000 loss on the sale, in 1995, of a lot in
Hillsborough, offset by a $4,000 gain on sale, in 1995, of a lot in
Burlington, as well as a $50,000 gain, in 1994, on the sale of a lot in
Fallston, Maryland.
Other income increased by $159,000 to $858,000 from $699,000 primarily due
to additional other income from an increase due to fire insurance proceeds
for lost rent at Rolling Road damaged by a fire in December, 1992, and from
other income at Harford Mall and Patriots Plaza.
In summary, total revenues increased by $1,448,000 to $18,317,000 from
$16,869,000.
Interest expense increased by $800,000 to $8,371,000 from $7,571,000
primarily due to the increased debt for the purchase of the Shoppes at
Easton.
Depreciation and amortization increased by $330,000 to $4,076,000 from
$3,746,000 primarily due to depreciation increases related to the purchase of
the Shoppes at Easton, and increased tenant improvements at Harford Mall and
to the Gateway I & II Offices. The increases were offset by depreciation
decreases primarily from the sale of Regal Row.
Operating expenses decreased by $261,000 to $2,257,000 from $2,518,000
primarily due to lower legal fees for tenant matters and to higher tenant
occupancy resulting in lower landlord operating expenses, as well as lower
operating expenses due to the sales of the Regal Row warehouse project in
February, 1995 and the Oakton bowl project in December, 1994.
General and administrative expenses increased by $80,000 to $1,246,000 from
$1,166,000 due primarily to a $105,000 expense for the incentive based
compensation plan offset by lower insurance & professional fee expenses.
Minority interest increased by $102,000 to $537,000 from $435,000 generally
due to higher earnings in minority interest ventures in 1995.
Earnings from operations increased by $397,000 to $1,830,000 from
$1,433,000.
Certain non-operating items occured for both periods. For the nine month
period ended September 30, 1995, MART recognized a loss on the sale of the
Regal Row warehouse operating property of $377,000, a cumulative effect of a
change in accounting for percentage rents of $612,000 and a gain on life
insurance proceeds of $1,002,000, which, when combined with earnings from
operations resulted in net earnings of $3,067,000 for the period. For the
nine month period ended September 30, 1994, MART recognized a gain on sales
of operating properties of $335,000 (which included gains on the sales of
Plantation Bowling Center of $279,000 and Orchard Landing Apartments of
$56,000), which, when combined with earnings from operations, resulted in net
earnings of $1,768,000 for the period.
Continued
<PAGE> 7
<PAGE>
MID-ATLANTIC REALTY TRUST
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANICAL CONDITION AND RESULTS OF OPERATIONS
Comparison of three months ended September 30, 1995 to three months ended
September 30, 1994
Rental revenues increased by $652,000 or 13% to $5,797,000 for the three
months ended September 30, 1995 from $5,145,000 for the three months ended
September 30, 1994. Net increases in occupancy and rental rates contributed
to project rental increases of approximately $324,000. In addition, the
purchase of the Shoppes at Easton in September, 1994 contributed to increased
rental revenues of approximately $295,000. The increases also included a
$187,000 increase in rental revenues attributable to the change in accounting
for percentage rents. The increases were also offset by a $96,000 decrease
in rental revenues attributable to the sale in February, 1995 of the Regal
Row warehouse project and the sale in December, 1994 of the Oakton Bowling
center. In addition, $58,000 in rental decreases were related to vacancies.
(Loss) gain on sales of properties held for sale decreased by $79,000,
which was due to a $29,000 loss on the sale, in 1995, of a lot in
Hillsborough, as well as a $50,000 gain, in 1994, on the sale of a lot in
Fallston, Maryland.
Other income increased by $27,000 to $277,000 from $250,000 primarily due
to other income at Patriots Plaza.
As of result of the above changes total revenues increased by $600,000 to
$6,045,000 from $5,445,000.
Interest expense increased by $328,000 to $2,822,000 from $2,494,000
primarily due to the increased debt for the purchase of the Shoppes at
Easton.
Depreciation and amortization increased by $109,000 to $1,374,000 from
$1,265,000 primarily due to depreciation increases related to the purchase of
the Shoppes at Easton and increased tenant improvements at Harford Mall.
Operating expense decreased by $140,000 to $719,000 from $859,000 primarily
due to higher tenant occupancy resulting in lower landlord operating
expenses, lower legal fees for tenant matters, and the sales of the Regal Row
warehouse project in February, 1995 and the Oakton bowl project in December,
1994.
General and administrative expenses increased by $33,000 to $417,000 from
$384,000 due primarily to a $35,000 expense for the incentive based
compensation plan offset by lower insurance & professional fee expenses.
Minority interest expense increased by $55,000 to $181,000 from $126,000
generally due to higher earnings in minority interest ventures in 1995.
Net earnings increased by $215,000 to $532,000 from $317,000.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings - In the ordinary course of business, the
Company is involved in legal proceedings. However, there are no material
legal proceedings pending against the Company.
Item 2. Changes in Securities - None
Item 3. Defaults upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
<PAGE> 8<PAGE>
MID-ATLANTIC REALTY TRUST
Item 5. Other Information -
Summary Financial Data
The following sets forth summary financial data which has been prepared by
the Company without audit. Management believes the following data should be
used as a supplement to the historical statements of operations. The data
should be read in conjunction with the historical financial statements and
the notes thereto for MART.
MID-ATLANTIC REALTY TRUST
Summary Financial Data
(In thousands, except per share data)
Nine months ended Three months ended
Septmber 30, September 30,
1995 1994 1995 1994
Revenues $18,317 $16,869 $6,045 $5,445
Net earnings $3,067 $1,768 $532 $317
Net earnings per share-primary $0.49 $0.28 $0.09 $0.05
OTHER FINANCIAL DATA:
Funds from operations
(FFO) (1)(2)-primary $5,931 $5,130 $1,935 $1,533
FFO - fully diluted (2) $9,362 $8,590 $3,078 $2,677
Weighted average number of
shares outstanding - primary 6,213 6,291 6,136 6,291
Weighted average number of shares
outstanding - fully diluted 11,925 12,005 11,849 12,005
SELECTED CASH FLOW DATA:
Net cash flow provided by
operating activities $7,766 $4,868
(1) Funds from operations as defined by the National Association of Real
Estate Investment Trusts, Inc. (NAREIT) - Funds from operations means net
income (computed in accordance with generally accepted accounting
principles), excluding cumulative effects of changes in accounting
principles, extraordinary or unusual items, and gains (or losses) from debt
restructuring and sales of property, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures. FFO
does not represent cash flows from operations as defined by generally
accepted accounting principles (GAAP). FFO is not indicative that cash flows
are adequate to fund all cash needs and is not to be considered as an
alternative to net income as defined by GAAP. The presentation of funds from
operations is not normally included in financial statements prepared in
accordance with GAAP.
(2) FFO for the nine months ended September 30, 1994, if presented on the
same basis as 1995 would be lower due to a timing change in the accounting
treatment of percentage rents of approximately $206,000,( or $.03 per share,
primary, or $.02 per share fully diluted). FFO for the three months ended
September 30, 1994, if presented on the same basis as 1995, would be higher
due to the timing change in the accounting treatment of percentage rents of
approximately $188,000, (or $.03 per share, primary or $.02 per share, fully
diluted). The new method of accounting for percentage rents which is
described in the notes to the consolidated financial statements was adopted
January 1, 1995.
Item 6. Exhibits and Reports on Form 8-K -
Exhibit No. 18 - Letter regarding change in accounting principles
None
Exhibit No. 27 - Financial Data Schedule
Filed thru EDGAR
<PAGE> 9
<PAGE>
MID-ATLANTIC REALTY TRUST AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MID-ATLANTIC REALTY TRUST AND
SUBSIDIARIES
(Registrant)
Date 11/9/95 By /s/ F. Patrick Hughes
F. Patrick Hughes
President
Principal Executive Officer
Date 11/9/95 By /s/ Paul G. Bollinger
Paul G. Bollinger
Controller
Principal Financial Officer
<PAGE> 10<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 912
<SECURITIES> 0
<RECEIVABLES> 1,852
<ALLOWANCES> 339
<INVENTORY> 0
<CURRENT-ASSETS><F1> 0
<PP&E> 161,404
<DEPRECIATION> 38,436
<TOTAL-ASSETS> 170,125
<CURRENT-LIABILITIES><F1> 0
<BONDS> 120,529
<COMMON> 62
0
0
<OTHER-SE> 22,403
<TOTAL-LIABILITY-AND-EQUITY> 170,125
<SALES> 0
<TOTAL-REVENUES> 18,317
<CGS> 0
<TOTAL-COSTS> 15,951
<OTHER-EXPENSES> 537
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,371
<INCOME-PRETAX> 2,454
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,454
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 612
<NET-INCOME> 3,067
<EPS-PRIMARY> .49
<EPS-DILUTED> .56
<FN>
<F1> Mid-Atlantic Realty Trust (MART) is in the specialized real estate
<F1> industry for which the current/noncurrent distinction is deemed in
<F1> practice to have little or no relevance. Therefore, MART prepares
<F1> unclassified balance sheets wlhich do not report current assets or
<F1> current liabilities.
</FN>
</TABLE>
